Fund Managers Otago (FMO)

Fund Managers Otago (FMO) was the managed investment scheme (MIS) manager of three schemes: Capital Mortgage Income Trust, the NZ Mortgage Income Trust, and NZ Mortgage Income Trust (No 2) Fund. 

The FMA cancelled the FMO’s MIS licence after finding its inadequate compliance and governance arrangements had resulted in continued material breaches of its licence obligations. 

July 2021 – The FMA cancelled FMO’s managed investment scheme (MIS) licence after finding the firm had materially breached its licence obligations. 

• Related media release: FMA cancels Fund Managers Otago licence

November 2020 – Trustees Executors Limited, the supervisor of three schemes operated by FMO, determined it was in the best interests of investors to remove FMO as manager of those schemes. The removal was initiated due to issues relating to FMO’s governance, solvency of the manager and regulatory breaches. 

As a result, the FMA appointed KPMG Restructuring Services NZ Limited as a temporary manager for the three schemes. 

• Related media release: FMA appoints KPMG Restructuring Services as temporary manager following removal of Fund Managers Otago